Everyone talks about demographic statistics like age, race, and geography without giving much attention to the cultural implications that go along with these demographics.
For example, 42% of the current population was born before 1980, making them 45 years or older. That means that about 60% were born after 1980 and have no memory of things like Kennedy’s death, the Vietnam war, The Beatles, using World Book instead of Google, and more. These are two large demographics with completely different sets of lived experiences and – as a result – wildly different worldviews.
I’ll illustrate how this plays out in daily life with two personal examples.
Growing up in the late 1940’s, my parents attached bells to clothes so they could find me when I ran out to play with the neighborhood kids. Today’s parents keep their kids on a much tighter leash — as evidenced by the fact that my neighbor just put up a fence to ensure his toddler would stay in the yard where he could see him.
As a doctoral student in the 1960’s, I researched my Ph.D. thesis at M.I.T. The department of Political Science – which did war research on Vietnam – was next door to our department. Thus, we had bomb scares a few times a week and I was required to haul computer punch cards home every night to ensure they were safe. Do young people today even know what punch cards are? Have they even heard the phrase “do not fold, bend, or mutilate?” Furthermore, people of my generation finished their schooling without laptops, Microsoft Office, or cell phones — a reality that is unfathomable to today’s students.
The most significant demographic consideration today is the nation’s aging population and its impact on economic growth. Contrary to popular opinion, supporting a 2-3% annual economic growth rate requires us to welcome 1-2 million immigrants every year.
While unemployment rates get the most press, it is actually labor shortages that are causing critical economic dilemmas — and this fact directly correlates with immigration.
Currently, a significant share of the about 300,000 jobs created monthly are from immigrants filling some of the over 9 million job openings. This trend is projected to continue for several years, especially with declining birth rates and a declining population in the child-producing ages. Without welcoming immigrants into our country, the lack of available laborers will continue to result in labor shortages and economic struggles.
In contrast, as the population lives longer, many older individuals face critical financial and social challenges. Dementia and Alzheimer’s have become significant dilemmas, especially as financial resources and government benefits decline. Health care needs, safety concerns, and loneliness become significant as friends and relatives pass away. Options for transportation, housing, and entertainment become limited and difficult to execute. A significant number of low-and medium-income seniors experience financial challenges that require them to extend their retirement plan. With increased longevity, even those individuals who have the means to retire want to stay in the workforce longer.
Hispanics make up about 20% of the U.S. population, compared to 7% in 1980. The average age for the Hispanic population is 30, compared to 39 for the total U.S population. This population tends to live in the Southwest. Most have been in this country for more than 10 years, over 80 % speak fluent English, and the average income is $ 59,000. The bottom line is that the Hispanic population is growing, assimilating, and contributing to the economy. Thus, they expect more and more recognition like native Americans.
In general, we need to recognize the diversity of the U.S. population. In the sixties, the nuclear family was considered the norm and typically considered of a white husband and wife, two kids, and a dog. Today, our country has diversified and families look different. Sex, race, national origin, sexual preferences, and age all vary dramatically and need to be recognized. Many of the social issues facing today’s society result from not recognizing and embrace diversity.
Demographics are more than just statistics. Specifically, these cultural shifts provide numerous opportunities and challenges. In particular, as our society becomes more complex, the cultural impact of demographics becomes more significant. In particular aging, Hispanic population increased, and diversity are providing numerous opportunities for better decision making. You must make certain to constantly evaluate relevant demographics and demographic trends as they relate to your business both in the now and in the future. This includes both local and national trends. Demographics can be one of the keys to your business’ success or failure.
Contact me to learn more about how you can research demographics in order to help you market your business more effectively and remove that old elephant from your closet.
Dr. Bert Shlensky, president of Startup Connection, is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he focuses on working with select start up and small businesses.
We surround ourselves with too much and superfluous information that complicates decision making and frequently makes it less effective. As a result, we are often incapable of determine what really matters and overwhelmed by the impossible task of focusing on it all. Stop trying to focus on everything! Instead, increase focus on the five areas that really matter.
The 80-20 Rule is a great tool to focus on the most productive activities
Before we review the 5 most important areas of focus, let’s review the 80/20 Rule. 80 % of your sales and profit will come from 20 % of your efforts.
Don’t believe me? Let’s look at what some of the most profitable companies and industries are doing:
Banks are focusing high wealth customers rather than spread their efforts among less productive clients.
Retailers are closing small stores and scaling back on inventory to allow them to focus their time and budget on their most profitable products and stores.
Companies are reducing unproductive practices to improve profits and reduce costs. Costo continues to thrive by offering fewer, more popular products.
As a startup entrepreneur, your primary goal is likely to develop as much positive cash flow as possible within a 12–18-month period. Laser-clear goals require laser focus.
5 Most Important Areas of Focus
Increase Focus on: Change
Change is the only constant in life. While it’s impossible to predict changes, there are ways to train yourself to become singularly focused on finding solutions and making improvements.
Rather than getting overwhelmed by the big picture, focus in on key areas that will jump start your programs. Simplify and reduce uncertainty and stress, understand what really affects your business, and allocate your concentration there.
Change your mindset. Rather than focusing on the hassle of making of changes; frame them as opportunities for increased sales, higher profits, and competitive positioning. This is the kind of flexible thinking that leads to success.
Increase Focus on: Open Systems
Despite the fluctuations, there are several tools for executing solutions and gains. Electric cars, women’s sports, and weight loss drugs are examples of emerging changes that will create massive opportunities
The first order of “open” business is facilitating open communication and collaboration. Empower your staff and management, and trust your employees. This may require reassessing your current workflow and hiring process to ensure you are hiring and training good people, giving them the authority they need to do their jobs well, and understanding that they will make mistakes at times.
Embracing the “status quo” of how things have always been done is the biggest mistake business owners make. Not convinced, take a look at how executing innovative solutions has been a game changer for major corporations.
What did all the success stories have in common? They all embraced the pillars of open systems:
Open Assets
Open Engagement
Open Services
Increase Focus on: Prioritizing
Our problem is not a lack of choices, it’s lack of information about each of those choices. Without all the information, prioritizing is impossible – for business owners and customers alike.
Cheese, beer, bread, and turkey breast are among the most over-assorted products in our lives. Yet, stores spend little time educating customers on varieties, taste, and price of different products. Prioritizing consumer education improves consumer satisfaction, which – in turn – improves consumer retention (and revenue).
Consumer-Facing Prioritization: Prioritize providing what consumers actually want and how they want to get it. Amazon had about 22-24% of all web traffic this holiday season and, yet, we’re still talking about less successful alternatives like retail and Internet outlets rather than educating businesses on how to capitalize on Amazon’s success.
Internal Prioritization: Prioritize what you’re good at and pay less attention to your weaknesses. Much of analytics in sports is based on getting players to focus on the efforts with the greatest probability of success.
Increase Focus on: Managing Risk
We are frequently afraid of risk when dealing with the rapid changes in our society and environment. Relying on old methods and a “we’ve always done it that way” mentality can actually be riskier than adapting and making change.
One of the biggest opportunities in evaluating risk is dealing with innovation and the exceptional. Better data also needs to be accompanied with some risk in searching for the exceptional.
“Risky” Ways to Improve Company Results
Create an open culture within your organization
Encourage testing of ideas
Embrace and cultivate diversity
Permit (within reason) “deviant” behavior
Test innovative recruitment strategies
Increase Focus on: Process
Many planning programs put financial objectives at the end of the process. Developing financial parameters at the beginning and then revising as programs develop has many benefits. It particular, it can help you avoid pursuing poor paths and highlight opportunities.
Key Takeaways
Focusing encourages you to prioritize key issues and reduce attention to insignificant ones. We’ve identified key issues and provided suggestions to help prioritize and consider the most significant opportunities. Encourage out-of-the-box thinking and ideas and avoid normal day-to-day problem solving. Encourage testing new ideas and scrapping ones that don’t work. Also, recognize that you will make mistakes and focus on solving them rather than blaming someone.
And, As Always:
Don’t neglect key elements of success: We sometimes forget that the chain is only as strong as the weakest link. Operations, customer service, and logistics are just as important as traditional functions. They present huge opportunities for a business to become more efficient and differentiate itself (i.e. selling on Amazon or bundling products).
Always be willing to improve. What are some specific areas you’d like to improve? Focus on those. Try to channel your energy into clear goals rather than on general ideas. And remember that success takes time and consistency. It may not happen overnight, but if you keep putting in the work, you will see progress.
We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward.
I recently spoke with two aspiring entrepreneurs about launching new businesses. Unfortunately, their chances of success seemed slim because they were more focused on their dreams of wealth than on the essential groundwork needed to thrive. They were simply unwilling to do the thinking, research and planning to be successful. Try not to be part of the 90% of entrepreneurs who fail within 5 years.
For example, the first requirement is to simply write things down. Let’s break down what’s crucial: first, you need to document your plans. This doesn’t have to be fancy; goals and strategies. Start with a flexible document that evolves as you progress, focusing on substance over style. If you can’t articulate your plans in writing, you probably haven’t thought them through.
The initial requirement to develop a successful business is to be able to describe it. What is your business concept? What do want to do, why are you different and why will you succeed? This will change as the concept evolves, but you need a framework to develop and evaluate the components of your business. This framework further guides your development and evaluation process as your idea evolves. Entrepreneurs who fail frequently don’t do this.
Consider the key components of the business. Pricing, quality, service, variety, distribution and marketing are just some of the considerations. Your approach will vary greatly depending on whether you’re selling high-ticket items or everyday goods. For example, selling Superbowl tickets for thousands of dollars is quite different from the cheap umbrella salesman who suddenly appears when it rains.
Communicate your unique value proposition to your target audience. This is one of the most difficult tasks of launching a new business. We all get excited about our differences, but does anyone understand them? Do enough customers care about your difference to change their behavior, or are they committed to a “we’ve always done it this way” mentality?
Develop, test, measure, and adapt. Business is dynamic, so your approach must be too. Many plans, forecasts, and proposals are done in a static format, with one-dimensional analysis and results. Often, they are flawed because we live in a more dynamic and interactive world.
For example, branding, marketing, pricing, and operations all must be viewed as an integrated program rather than separate and isolated activities. Similarly, businesses need to have alternatives at the ready, and processes in place to adapt. Mistakes will occur. Remember, Thomas Edison tested thousands of light bulbs before succeeding.
Will you make money? Many entrepreneurs who fail start with the wrong question: How do I raise money? But they haven’t worked out the details of why they need money, what they will do with it, and how they will pay it back.
I suggest an almost opposite approach. Develop your needs, resources, plans and cash flow and then execute programs to raise capital. Some tips to improve this:
Develop initial timed estimates that will be continually revised.
How much revenue, expenses and profit will you generate over certain periods?
What assets do you and associates have and how much can you afford to risk?
When it comes to financing, focus on understanding your needs, resources, and cash flow before seeking capital.
There are a number of tools to reduce investment needs. These include borrowing against cash flow, outsourcing, pledging personal assets, and developing investments as the business progresses. Outsourcing efforts like manufacturing, distribution, services, and rent are particularly recommended to reduce requirements and adjust as the business grows.
As a rule, most businesses take six months to a year to even start. Consider how long it will take to get off the ground and calculate your startup expenses accordingly. Have you detailed the startup expenses and investment costs to start the business? Those include overall expenses, equipment, salaries, website development, product development, administration, pre-payments (like rent deposits) and more. Remember that upfront marketing, promotions, public relations, and development costs can affect income and cash on hand.
Digital is a critical aspect of almost any entrepreneurial pursuit today. Digital tools are essential in today’s business landscape, so plan to invest in a website and other tech necessities. Digital marketing, like Google ads, frequently has the advantage of both testing and pay as you go. As a result, revenue can occur much earlier than with traditional marketing efforts.
Can you deliver what you sell? Operations and logistics are frequently viewed as secondary functions that can be outsourced. However, efficient management of inventory and staffing can make or break a business.
Balancing and managing inventory to serve demand and reduce closeouts can be critical to success. Even in service businesses, scheduling staff to meet demand and avoiding time and money wasted can be critical to success. Reducing lead times, improving flexibility, and planning can improve effectiveness and lower costs.
Many operations experts have shown that 80% of sales are derived from 20% of offered products or services. Simplicity is key. Entrepreneurs waste time, money, and frequently add confusion by adding too much complexity to their business models. When and if possible, always go to the KIS Method (Keep it Simple).
In summary, success in entrepreneurship requires careful planning, evaluation, and execution. Many failures could have been avoided with better preparation. As my former manager once said, our low success rate wasn’t due to lack of effort; it was because many entrepreneurs were better off keeping their day jobs.
Starting a business is not easy. An entrepreneur needs to understand and express his/her passion. To do so, means to develop a mission statement and a plan. But that’s just the tip of the iceberg. Starting a business also requires enthusiasm, energy, and persistence to market your business concepts to suppliers, customers, and investors.
For more information download a free copy of my book, Passion & Reality for Business Success.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
At StartupConnection, we’re all about delivering blogs that are not just informative but also packed with actionable insights. We understand that information overload is real. So, we’re testing a new approach – a blog solely dedicated to parameters, giving you the space to prioritize what truly matters. We’d love to hear your thoughts on this, so feel free to drop us some feedback! In this post, we will be discussing optimizing strategies regarding making decisions and taking action.
Developing Programs with Precision
Sometimes, we’re so engrossed in creating programs that we forget about the parameters needed for optimizing strategies. Let’s simplify it. Here are some straightforward tips to consider parameters effectively:
Crafting Your Money-Making Plan
The “Pro Forma Income Statement”
This may sound a bit grand, but it’s your roadmap to cash flow.
Consider how a big marketing budget can affect your income. It may seem counter-intuitive but spending more on marketing might just boost those unit sales.
Investor-Worthy Plans
Investors crave plans but hate wild guesses. Be the entrepreneur who delivers realistic projections using templates. Specific numbers matter, even if they’re just a start. Remember that sales volume goals and pricing strategies are the building blocks of any plan.
Holistic Planning
Comprehensive Considerations
Levels of marketing, overhead, and administrative costs – they all play a role. Analytical, social, and intuitive considerations should also blend seamlessly into your plan.
Adaptability is Key
The world changes fast, and so should your strategy. Regularly review parameters like population, economy, and social values. Stay updated as the latest variables might just be the game-changer.
Navigating Cause and Effect
Decoding Relationships
Cause and effect can be spurious. Relationships involve a mix of factors. Analytics is critical, but don’t ignore intuition, risk, and low probabilities. Just like Gates, Bezos, and Jobs – master the art of thinking outside the box. It is the outliers and risktakers who create much of the innovation, excitement and change in our society.
Managing Bias and Embracing Risk
Navigating the Bias Maze
Bias, especially in small businesses, is human. Be mindful; assumptions, analysis, and data can sway your decisions. Consider different age groups without falling into bias traps.
Risk and Outcomes
Predicting results with historical data is straightforward. However, for new programs or inconsistent data, it’s about educated estimates. Embrace risk as it’s where innovation thrives.
Commit to Action
Nike’s Wisdom: JUST DO IT!
Not making a decision is a decision in itself. Recognize the importance of parameters in your decision processes.
Balancing the 80-20 Rule
Strategic Account Maximization
The 80-20 rule suggests maximizing old accounts with increased potential before reaching out to new accounts. Balance critique with support, collaboration, and teamwork.
The Expertise Quotient
Seeking and using expertise might be the missing link in your strategy. Collaboration enhances effectiveness, so let’s focus on teamwork as well as obtaining expert support.
In summary, understanding and incorporating parameters into your decision-making process is the secret sauce for success. So, let’s navigate these parameters together and remember that optimizing strategies will help to pave the way for effective and strategic decision-making.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at:
Dr. Bert Shlensky, President of StartupConnection.net, has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. Please visit our website: https://www.startupconnection.net/ for more information.
To effectively gauge opportunities and tackle challenges, take charge – a handy tool is reviewing your past results, current challenges, and potential opportunities down the road. While a bit of analysis and number-crunching can be beneficial, my advice is to keep things informal and swift. The key here is to concentrate on spotting opportunities and embracing change, steering clear of getting bogged down in the intricacies of the review process. Let’s shift the focus to identifying and assessing alternatives instead of merely singing your own praises.
Building on Success
The best opportunities are frequently found by building on success rather than repeating disappointments. Take health, for instance. There’s a world of opportunities to boost your well-being beyond the obvious options of exercise, a balanced diet and annual checkups. In the ever-evolving health scene, there’s a constant flow of new medications to prevent problems that we can take charge of if we stay informed.
Financial Snapshot
Now, let’s ask ourselves the big questions: How are you doing right now, and what do you want to achieve? Get a snapshot of your financial landscape, factoring in your growth, age, wealth, and goals. If retirement is here or peeking around the corner, consider your goals, wealth, income, and maybe leaving a little something for the next generation. Here’s my two cents: take a bit of risk, understand your investments, as well as your financial advisor’s recommendations.
Reality Check
After gathering your data, give your findings a reality check by going over them with someone – a professional, an expert, or a colleague. Trust is key here, so the person you consult with needs to be knowledgeable enough that you can trust their feedback.
Mapping Your Journey
Now let’s talk about career and life. What’s on the horizon for next year? Can you hit your job goals, or is it time to re-evaluate them? Do you need to tweak your work-life balance, maybe dive into some new activities or maybe let go of ones you simply don’t enjoy anymore? This is the time to take charge mapping out your personal GPS for the next leg of your journey.
Communication and Cooperation
When it comes to communication, how do we go about cooperating to create a win-win situation?It is well proven that tactics like collaboration, trust, and listening work better in decision making than dictating, lecturing, and proclaiming false expertise. There’s extensive research supporting the idea that people resist change unless they can see what’s in it for them. When given the opportunity to argue your case, try to emphasize the benefits for the other party. If you can make them, see the positives they’ll reap in the compromise, you’re much more likely to convert them.
Risk and Creativity
Let’s talk risk. Consider when it would be beneficial to break free from the predictable and try something more creative. Making decisions and taking risks are a dance between probability and information. Predicting outcomes with solid data is one thing, but it’s a different ball game when it comes to new ideas. Help take charge of your future. And remember that sharing information often maximizes benefits for everyone.
Fresh Ideas and Strategies for Growth
Below you’ll find links to some recent blogs to help take charge of improvement in all areas. Hopefully, reviewing some of the suggestions from this list inspires you to incorporate some fresh ideas and explore various strategies. We also recommend using the content to develop and test new alternatives and solutions. In your efforts, don’t be afraid of some failures along the way—it’s the best way to learn and grow.
And remember, as the year comes to a close and stress levels tend to increase, be kind to yourself and others, find ways to relax, enjoy time with family, but also make time for yourself. Take deep breaths, cut yourself some slack, and know that your best is enough. Prioritizing can dramatically improve results. Focus on what you are good at and don’t sweat the small stuff. Think about it this way – most sports analytics are based on getting players to focus on the efforts with the greatest probability of success.
In a nutshell, taking stock of your current status can add to the excitement and potential of your efforts. Aim for accomplishment and satisfaction. Prioritize tasks and set realistic goals. Remember that accepting risk and managing change allows you to maximize your efficiency and accomplish more. Don’t shy away from those out-of-the-box opportunities either. And who knows, your next move might be a game-changer in making next year your year.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
